Just stuff from some coonass who's got some highfalutin investment title.

Wednesday, May 22, 2013

It's The Economy Stupid: Market Close

Reversal of fortune. Looks like all of the indices are down today. But most of them are up from their lows on the day. A key reversal? Or an intraday reversal of a reversal? At one point the Dow was up +150 points, was down as much as -121 points and closed down -80 points. One day does not a trend make. But that’s still a whole lot of red…

The Bernanke opened the door a bit wider to tapering down the QE asset purchases. Under questioning Mr. Bernanke said the Fed could prepare to “take a step down” in the next few meetings if the outlook for the labor market improved.

So perhaps the market realized that the easy money favoring risk based assets (stocks) has an expiration date after all.